Predictive Oncology Reports Third Quarter 2024 Financial Results and Provides Strategic Update
Predictive Oncology (POAI) reported Q3 2024 financial results with a loss from continuing operations of $2.3 million on revenue of $345,686, down from $676,626 in Q3 2023. The company ended Q3 with $3.1 million in cash and cash equivalents, compared to $8.7 million at end-2023. Key developments include initiating a strategic alternatives review process to maximize shareholder value, implementing a 20% cost reduction initiative, and raising $1.3 million through warrant exercises. The company validated its biobank's long-term sample viability and entered the $51.5 billion biomarker discovery market following successful studies.
Predictive Oncology (POAI) ha riportato i risultati finanziari del terzo trimestre 2024 con una perdita dalle operazioni continuative di 2,3 milioni di dollari su un fatturato di 345.686 dollari, in calo rispetto ai 676.626 dollari del terzo trimestre 2023. L'azienda ha chiuso il terzo trimestre con 3,1 milioni di dollari in liquidità e equivalenti, rispetto agli 8,7 milioni di dollari a fine 2023. Sviluppi chiave includono l'avvio di un processo di revisione delle alternative strategiche per massimizzare il valore per gli azionisti, l'attuazione di un'iniziativa di riduzione dei costi del 20% e la raccolta di 1,3 milioni di dollari tramite esercizi di warrant. L'azienda ha convalidato la viabilità a lungo termine dei campioni della sua biobanca ed è entrata nel mercato della scoperta dei biomarcatori da 51,5 miliardi di dollari dopo studi di successo.
Predictive Oncology (POAI) reportó resultados financieros del tercer trimestre de 2024, con una pérdida de operaciones continuas de 2.3 millones de dólares sobre ingresos de 345,686 dólares, en comparación con los 676,626 dólares del tercer trimestre de 2023. La empresa cerró el tercer trimestre con 3.1 millones de dólares en efectivo y equivalentes, en comparación con los 8.7 millones de dólares a fines de 2023. Desarrollos clave incluyen el inicio de un proceso de revisión de alternativas estratégicas para maximizar el valor para los accionistas, la implementación de una iniciativa de reducción de costos del 20%, y la recaudación de 1.3 millones de dólares a través de ejercicios de warrants. La empresa validó la viabilidad a largo plazo de las muestras de su biobanco y entró en el mercado de descubrimiento de biomarcadores de 51.5 mil millones de dólares tras estudios exitosos.
Predictive Oncology (POAI)는 2024년 3분기 재무 결과를 보고하며 지속적인 운영에서 230만 달러의 손실을 기록했으며, 수익은 345,686달러로 2023년 3분기의 676,626달러에서 감소했습니다. 이 회사는 3분기 말에 310만 달러의 현금 및 현금성 자산을 보유하고 있으며, 2023년 말에는 870만 달러였습니다. 주요 개발 사항에는 주주 가치를 극대화하기 위한 전략적 대안 검토 프로세스 시작, 20% 비용 절감 이니셔티브 시행, 그리고 보증 행사를 통해 130만 달러를 조달한 것이 포함됩니다. 이 회사는 생물은행의 장기 샘플 생존 가능성을 검증했으며 성공적인 연구를 통해 515억 달러 규모의 바이오마커 발견 시장에 진입했습니다.
Predictive Oncology (POAI) a publié les résultats financiers du troisième trimestre 2024, avec une perte des opérations continues de 2,3 millions de dollars sur un chiffre d'affaires de 345.686 dollars, en baisse par rapport aux 676.626 dollars du troisième trimestre 2023. L'entreprise a terminé le troisième trimestre avec 3,1 millions de dollars en liquidités et équivalents, contre 8,7 millions de dollars à la fin de 2023. Développements clés incluent le lancement d'un processus d'examen des alternatives stratégiques pour maximiser la valeur pour les actionnaires, la mise en œuvre d'une initiative de réduction des coûts de 20% et la levée de 1,3 million de dollars par le biais d'exercices de warrants. L'entreprise a validé la viabilité à long terme des échantillons de sa biobanque et est entrée sur le marché de la découverte de biomarqueurs de 51,5 milliards de dollars suite à des études réussies.
Predictive Oncology (POAI) berichtete über die finanziellen Ergebnisse des dritten Quartals 2024 mit einem Verlust aus fortgeführten Aktivitäten von 2,3 Millionen Dollar bei Einnahmen von 345.686 Dollar, im Vergleich zu 676.626 Dollar im dritten Quartal 2023. Das Unternehmen schloss das dritte Quartal mit 3,1 Millionen Dollar in Bar- und Zahlungsmitteln ab, verglichen mit 8,7 Millionen Dollar Ende 2023. Wichtige Entwicklungen umfassen den Beginn eines Überprüfungsprozesses strategischer Alternativen zur Maximierung des Shareholder-Values, die Umsetzung einer Kostenreduktionsinitiative von 20 % sowie die Beschaffung von 1,3 Millionen Dollar durch Ausübung von Warrants. Das Unternehmen validierte die langfristige Probenlebensfähigkeit seiner Biobank und trat nach erfolgreichen Studien in den 51,5 Milliarden Dollar schweren Markt für Biomarker-Entdeckungen ein.
- Implemented cost savings initiative reducing cash burn by 20% annually
- Raised $1.3 million through warrant exercises in July 2024
- Successfully validated long-term viability of 150,000+ tumor samples in biobank
- Expanded into $51.5 billion biomarker discovery market
- Revenue declined 48.9% to $345,686 in Q3 2024 from $676,626 in Q3 2023
- Net loss from operations of $2.3 million in Q3 2024
- Cash position decreased to $3.1M from $8.7M at end of 2023
- Stockholders' equity declined to $2.0M from $8.3M at end of 2023
Insights
The Q3 results reveal significant financial challenges, with
The strategic alternatives exploration, including potential sale or asset divestiture, signals serious financial pressure. With stockholders' equity dropping to
The pivot into the
The reduction in tumor-specific 3D cell culture model sales in Pittsburgh is concerning, as it represents a decline in core business revenue. While the AI/ML capabilities combined with the validated biobank create a unique value proposition in oncology drug discovery, the company needs to rapidly convert partnership discussions into revenue-generating collaborations to remain viable.
Company initiates process to explore a broad range of strategic alternatives to maximize shareholder value
PITTSBURGH, Nov. 13, 2024 (GLOBE NEWSWIRE) -- Predictive Oncology (Nasdaq: POAI), a science driven company leveraging its proprietary artificial intelligence and machine learning capabilities, extensive biorepository of tumor samples, and CLIA laboratory, to accelerate oncologic drug discovery and enable drug development, today reported financial and operating results for the quarter ended September 30, 2024, and provided a corporate update. The Company reported a loss from continuing operations of approximately
Predictive Oncology also announced today that the company’s Board of Directors, working with a strategic advisor, has initiated a process to evaluate a broad range of strategic alternatives intended to maximize shareholder value. Possible alternatives can include, but are not limited to, a sale of the company, a sale of an asset or assets of the company, or a licensing transaction. There can be no assurance that a transaction will occur. Management plans to provide additional updates on this process as developments warrant.
Q3 2024 and Recent Highlights:
- Announced the results of an additional study that successfully demonstrated the long-term stability and viability of the more than 150,000 cryopreserved patient tumor samples stored within the Company’s proprietary biobank.
- The samples stored in the biobank had originally been tested and cryopreserved between 2008 and 2016.
- The samples continue to produce drug response data that is consistent with their original clinical testing results.
- Concordance of drug response results between the original fresh patient sample testing and long-term cryogenically stored tumor material from the same patient was
100% . - Predictive Oncology released a new white paper that discusses this study, and the importance of tumor sample viability, which can be found here.
- Entered the
$51.5 billion biomarker discovery market following compelling results from retrospective ovarian cancer study with UPMC Magee-Womens Hospital:- Predictive Oncology published a white paper on the biomarker discovery opportunity, which can be found here.
- Implemented a cost savings initiative intended to further streamline Predictive Oncology’s operations, extend its cash runway, and support its new focus on novel biomarker discovery. The initiative reduced the Company’s run rate for cash used in operating activities by approximately
20% on an annualized basis. - Raised additional funding of
$1.3 million in July through a warrant inducement transaction.
“The strategic repositioning of the company that I initiated upon assuming the role of CEO in October 2022 has led to significant opportunities, both as a partner to leading global drug developers as well as for our own platform,” said Raymond F. Vennare, Chief Executive Officer and Chairman of Predictive Oncology. “This is highlighted by our announcement last quarter that, as a result of our successful work with UPMC Magee-Womens Hospital, we expanded our AI/ML offering to pursue the discovery of novel biomarkers capable of predicting patient outcomes and drug responses, beginning with ovarian cancer. The implication here is notable in that, with our unique portfolio of assets that include our proprietary biobank of primary tumor samples and decades of drug response data, we are uniquely positioned to play a meaningful role in the early discovery of new cancer therapeutics as well as their ongoing development.”
“Notwithstanding our progress, we believe the opportunities in front of us are underappreciated by the capital markets, and in an effort to create sustained shareholder value, we have initiated a process to evaluate a broad range of strategic alternatives. Together with the cost savings initiative that we implemented last quarter that will reduce our cash burn by around
“In parallel, we are engaged in ongoing discussions with several prospective partners that have the potential to generate revenue for our company should we be successful in executing one or more collaborations. We are well positioned to be a leader in the rapidly evolving field of AI-driven drug discovery and development,” Mr. Vennare concluded.
Considering Predictive Oncology’s ongoing process to evaluate strategic alternatives, the Company has elected not to host an investor conference call this quarter. Predictive plans to host a corporate update call in the near future as developments warrant.
Q3 2024 Financial Summary:
- Concluded the third quarter of 2024 with
$3.1 million of cash and cash equivalents, compared to$8.7 million as of December 31, 2023, and$2.0 million in stockholders’ equity as of September 30, 2024, compared to$8.3 million as of December 31, 2023. During the quarter, the Company raised$1.3 million in gross proceeds through the exercise of 958,117 warrants. - Basic and diluted loss from continuing operations per common share for the quarter ended September 30, 2024, was
$(0.36) , compared to$(0.68) for the quarter ended September 30, 2023.
Q3 2024 Financial Results:
- The Company recorded revenue of
$345,686 for the third quarter of 2024, compared to$676,626 for the comparable period in 2023. Revenue for the three months ended September 30, 2024, was primarily derived from the Eagan operating segment, while revenue for the three months ended September 30, 2023, was primarily derived from the Pittsburgh operating segment. The decrease in revenue from the comparative period was primarily due to decreased sales of tumor-specific 3D cell culture models from the Pittsburgh operating segment, offset by increased sales of STREAMWAY systems during the third quarter of 2024 from the Eagan operating segment. - General and administrative expenses decreased by
$761,949 t o$1,582,671 for the three months ended September 30, 2024, compared to$2,344,620 for the comparable period in 2023. The decrease was primarily due to decreased employee compensation related to lower headcount related expenses and severance for former employees. - Operations expenses decreased by
$5,274 t o$633,422 for the three months ended September 30, 2024, compared to$638,696 for the comparable period in 2023. The minor decrease was primarily due to decreased cloud computing expenses resulting from cost saving efforts, offset by increased costs associated with our Pittsburgh laboratory including supplies and maintenance. - Sales and marketing expenses decreased by
$87,789 t o$246,650 for the three months ended September 30, 2024, compared to$334,439 for the comparable period in 2023. The decrease was primarily due to lower employee compensation including sales commissions. - Net cash used in operating activities of continuing operations was
$8,913,589 and$9,060,285 for the nine months ended September 30, 2024, and 2023, respectively. Cash used in operating activities decreased in the 2024 period primarily because of changes in working capital.
Forward-Looking Statements:
Certain matters discussed in this release contain forward-looking statements. These forward-looking statements reflect our current expectations and projections about future events and are subject to substantial risks, uncertainties and assumptions about our operations and the investments we make. All statements, other than statements of historical facts, included in this press release regarding our strategy, future operations, future financial position, future revenue and financial performance, projected costs, prospects, plans and objectives of management are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “would,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Our actual future performance may materially differ from that contemplated by the forward-looking statements as a result of a variety of factors including, among other things, the risks related to the success of our collaboration arrangements, commercialization activities and product sales levels by our collaboration partners, and other factors discussed under the heading “Risk Factors” in our filings with the SEC. Except as expressly required by law, the Company disclaims any intent or obligation to update these forward-looking statements.
Investor Relations Contact:
Tim McCarthy, CFA
LifeSci Advisors, LLC
tim@lifesciadvisors.com
| PREDICTIVE ONCOLOGY INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||
| September 30, 2024 | December 31, 2023 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 3,078,955 | $ | 8,728,660 | |||
| Accounts receivable | 463,834 | 277,641 | |||||
| Inventories | 504,380 | 480,803 | |||||
| Prepaid expense and other assets | 442,513 | 512,078 | |||||
| Current assets of discontinued operations | 77,726 | 79,249 | |||||
| Total current assets | 4,567,408 | 10,078,431 | |||||
| Property and equipment, net | 402,909 | 491,214 | |||||
| Intangibles, net | 221,473 | 241,339 | |||||
| Lease right-of-use assets | 2,203,935 | 2,598,091 | |||||
| Other long-term assets | 102,509 | 105,509 | |||||
| Non-current assets of discontinued operations | - | 902,665 | |||||
| Total assets | $ | 7,498,234 | $ | 14,417,249 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 1,141,922 | $ | 1,334,064 | |||
| Note payable | 195,776 | 150,408 | |||||
| Accrued expenses and other liabilities | 1,517,242 | 1,542,948 | |||||
| Derivative liability | 1 | 1,376 | |||||
| Contract liabilities | 257,393 | 302,499 | |||||
| Lease liability | 496,788 | 444,897 | |||||
| Current liabilities of discontinued operations | 207,644 | 174,839 | |||||
| Total current liabilities | 3,816,766 | 3,951,031 | |||||
| Other long-term liabilities | 10,046 | 5,459 | |||||
| Lease liability – net of current portion | 1,704,453 | 2,130,977 | |||||
| Non-current liabilities of discontinued operations | - | 58,002 | |||||
| Total liabilities | 5,531,265 | 6,145,469 | |||||
| Stockholders’ equity: | |||||||
| Preferred stock, 20,000,000 shares authorized inclusive of designated below | |||||||
| Series B Convertible Preferred Stock, $.01 par value, 2,300,000 shares authorized, 79,246 shares outstanding as of September 30, 2024, and December 31, 2023 | 792 | 792 | |||||
| Common stock, $.01 par value, 200,000,000 shares authorized, 6,666,993 and 4,062,853 shares outstanding as of September 30, 2024, and December 31, 2023, respectively | 66,670 | 40,629 | |||||
| Additional paid-in capital | 180,156,184 | 175,992,242 | |||||
| Accumulated deficit | (178,256,677 | ) | (167,761,883 | ) | |||
| Total stockholders’ equity | 1,966,969 | 8,271,780 | |||||
| Total liabilities and stockholders’ equity | $ | 7,498,234 | $ | 14,417,249 | |||
| PREDICTIVE ONCOLOGY INC. CONDENSED CONSOLIDATED STATEMENTS OF NET LOSS (Unaudited) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 345,686 | $ | 676,626 | $ | 1,012,232 | $ | 1,308,102 | |||||||
| Cost of sales | 196,919 | 97,868 | 535,511 | 367,461 | |||||||||||
| Gross profit | 148,767 | 578,758 | 476,721 | 940,641 | |||||||||||
| Operating expenses: | |||||||||||||||
| General and administrative expense | 1,582,671 | 2,344,620 | 5,834,783 | 6,823,324 | |||||||||||
| Operations expense | 633,422 | 638,696 | 2,188,936 | 2,099,974 | |||||||||||
| Sales and marketing expense | 246,650 | 334,439 | 1,268,824 | 1,112,412 | |||||||||||
| Total operating expenses | 2,462,743 | 3,317,755 | 9,292,543 | 10,035,710 | |||||||||||
| Total operating (loss) | (2,313,976 | ) | (2,738,997 | ) | (8,815,822 | ) | (9,095,069 | ) | |||||||
| Other income | 36,378 | 47,838 | 64,497 | 118,618 | |||||||||||
| Other expense | (5,822 | ) | (60,671 | ) | (9,393 | ) | (60,671 | ) | |||||||
| Gain on derivative instruments | 7 | 3,463 | 1,375 | 11,724 | |||||||||||
| Loss from continuing operations | (2,283,413 | ) | (2,748,367 | ) | (8,759,343 | ) | (9,025,398 | ) | |||||||
| Loss from discontinued operations | (811,277 | ) | (415,083 | ) | (1,735,451 | ) | (1,483,222 | ) | |||||||
| Net (loss) | $ | (3,094,690 | ) | $ | (3,163,450 | ) | $ | (10,494,794 | ) | $ | (10,508,620 | ) | |||
| Loss per common share, basic and diluted: | |||||||||||||||
| Loss from continuing operations | (0.36 | ) | (0.68 | ) | (1.74 | ) | (2.26 | ) | |||||||
| Loss from discontinued operations | (0.13 | ) | (0.10 | ) | (0.34 | ) | (0.37 | ) | |||||||
| Net (loss) per common share, basic and diluted | $ | (0.48 | ) | $ | (0.78 | ) | $ | (2.08 | ) | $ | (2.63 | ) | |||
| Weighted average shares used in computation – basic and diluted | 6,396,221 | 4,031,356 | 5,046,227 | 3,998,887 | |||||||||||
FAQ
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